Sunny Optical Technology (Group) Company (2382) H2 2025 earnings summary

Executive summary

• Revenue rose 12.9% year-over-year to RMB 43.23 billion in 2025, driven by handset, vehicle, and pan-IoT segments, with record operational results and high-quality growth initiatives.

• Net profit attributable to shareholders surged 71.9% to RMB 4.64 billion, supported by a one-time RMB 919 million share swap gain and improved net profit margin.

• Gross profit increased 21.6% to RMB 8.52 billion, with gross margin improving to 19.7%, led by premiumization and higher vehicle business share.

• Operating expense ratio declined to 11.6%, with selling/distribution expenses down 20.9% and R&D up 11.4%.

• Strategic focus on AI integration, premiumization, and expansion into AR, robotics, and optical interconnect.

Financial highlights

• Revenue: RMB 43.23 billion in 2025, up 12.9% year-over-year.

• Gross profit: RMB 8.52 billion, gross margin up to 19.7%.

• Net profit: RMB 4.64 billion, up 71.9% year-over-year, including share swap gain.

• Net cash from operating activities jumped 75.9% to RMB 6.08 billion.

• Capital expenditure grew 29.7% to RMB 2.93 billion, mainly for property, plant, and equipment.

Outlook and guidance

• 2026 group revenue and operating profit expected to grow by no less than 7%.

• Handset business revenue projected to grow 5%-10% year-over-year in 2026, with gross margin for lenses at 25%-30% and modules at no less than 8%.

• Glass-plastic hybrid HLS revenue to grow over 150%, periscope lens by 40%, periscope module by 20%, and actuator modules by 50% in 2026.

• Vehicle business to be spun off with a public offering not exceeding 15% to unlock value and attract global talent.

• XR business AR revenue projected at RMB 2 billion in 2026, with mass production of new products expected in 2027.